TORONTO — Rachel Doran, executive director at Clean Energy Canada, made the following statement in response today’s announcement of the National Heat Pump Rebate Program:
“The federal government’s newly launched $2 billion National Heat Pump Rebate Program is a huge step forward to help as many as 820,000 Canadian households benefit from the efficiency and cost savings of an electric heat pump. This new funding will help households switch to clean heating and cooling and save on monthly bills at a time when Canadians are feeling the pressure of rising energy costs.
“The majority of Canadian households can save by switching to a heat pump, as heat pumps are two to five times more efficient than the alternative. Analysis by Clean Energy Canada shows that a household in Nova Scotia can save over $1,800 in fuel costs per year by switching from an oil furnace to a heat pump, and a household in B.C. switching from natural gas to a heat pump could save $262—while cutting 97% of heating emissions.
“In our 2025 market research of the greater Toronto and Vancouver areas, the number one barrier to adopting a heat pump that participants cited was upfront cost. This new rebate will help more households make the switch to benefit from monthly fuel savings over the lifetime of their heating and cooling system.
“This announcement delivers on a key piece of the government’s electricity strategy, which committed to retrofitting one million homes. New polling conducted by Abacus Data on behalf of Clean Energy Canada finds that Canadians want the government’s electricity strategy to deliver on affordability, with 78% saying it should be a top priority for how additional power is used (full breakdown of results below).
“On top of cost savings, heat pumps provide cooling, which is especially relevant in the parts of Canada that have historically seen lower uptake of A/C but are now faced with hotter summers. In B.C., which has seen deadly heatwaves in recent years, less than half of households reported having access to cooling.
“Households that have made the switch to a heat pump report high levels of satisfaction, thanks to the many benefits they offer. A recent survey of Canadian heat pump owners found that 91% would recommend a heat pump to their friend or neighbour, citing increased comfort, cooling, and lower bills as the main benefits.
“An important design feature of this new program is the 24-hour approval time for receiving the rebate. Most households do not think about replacing their furnace until it breaks and cannot wait for a lengthy application process to be completed before installing a heat pump. The 24-hour turnaround ensures households receive support when they need it and will enable more Canadians to make use of the program.
“We are also pleased to see the renewed funding of $110 million for the Deep Retrofit Accelerator Initiative. This program has successfully launched retrofit initiatives across the country. We hope this new round of funding will turn it into a force for market transformation, improving Canadians’ access to an even better suite of energy efficiency technologies and helping even more households complete energy retrofits.
“Prime Minister Carney has said that electricity is the clear solution to Canada’s energy security, affordability, and competitiveness. Today’s announcement sets Canada’s electricity strategy up to help deliver on all three and to ensure everyday Canadians reap the cost-saving and energy security benefits electrification provides.”
RESOURCES
Report: Heat Pump Owners Have Their Say
Report: More for Less
Report: Back in the Race
